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just olya [345]
2 years ago
12

If real GDP is $150 billion, full employment GDP is $600 billion, and the marginal propensity to consume is 0.8, then Congress s

hould
Business
1 answer:
KengaRu [80]2 years ago
5 0

Answer:

increase government spending by $90 billion

Explanation:

in order to reach full employment GDP level, the government should increase its spending by $90 billion. Total GDP increase = increase in government spending / government multiplier = $90 billion / (1 - 0.8) = $90 billion / 5 = $450 billion.

GDP will increase from $150 billion + $450 billion = $600 billion

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If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, th
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If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will  rise, causing households and businesses to hold less money.

Option A

<u>Explanation: </u>

Fiscal policy is the central bank's macroeconomic policy. This covers the supply of money and interest rate control and is also the demand-side economic strategy of a country's government for achieving macroeconomic targets such as inflation, investment, productivity, and liquidity.

If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.

The supply of money meets the demand for money, and the real rate of interest is higher than the number of equilibrium.

7 0
2 years ago
The _____ of an organizational life cycle is characterized by growth and the expansion of organizational resources.
Verizon [17]

Answer: The _youth_ of an organizational life cycle is characterized by growth and the expansion of organizational resources.

Explanation:

7 0
2 years ago
An economic contraction caused by a shift in aggregate demand causes prices to a. rise in the short run, and rise even more in t
raketka [301]

Answer:

c. fall in the short run, and fall even more in the long run.

Explanation:

The aggregate demand shifts to the left in recession or contractions, in consequence the level of prices falls. For this analysis we consider the shor-run supply curve with a positive slop.

As we know, the economy in the long run tends to equilibrium, where the the production level is fixed and equal to the potential of production of the economy. The initial reduction of prices incentives the consumption in the long run, stabilizing with the long run quantites in a minor level of prices.

In the attached image you can observe the process described previously.

3 0
3 years ago
Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that the fair market value of the
Schach [20]

Answer:

$100,000

Explanation:

According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''

Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.

Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation . In the scenario we have no depreciation figures, hence the basis is the cost of $100,000

8 0
3 years ago
Problem solving is often considered a
Troyanec [42]
Solution , explanatory , inquiring
7 0
3 years ago
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